• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Economist article, Making The Desert Bloom, brings to light the condition that Mexico's economy is currently in, restricted by cartels, monopolies and its unfortunate situation with America.

Extracts from this document...

Introduction

Connor Reilly Economics - Mrs. Sickle 14 October 2011 Current Events Desert Economy Struggling To Stay Afloat When America's economy fell into a recession in 2008, it took down mexico along with it. America is by far the largest buyer of Mexican products, last year alone doing $400 billion in business. The Economist article, "Making The Desert Bloom," brings to light the condition that Mexico's economy is currently in, restricted by cartels, monopolies and its unfortunate situation with America. When stocks plummeted and jobs were lost in america, Mexico's economy as a whole fell by 6.1%, the northern state of Coahuila getting hit the worst with a drop of 12.3%. ...read more.

Middle

At the beginning of the decade, Mexico claimed the largest Latin American economy but since has been over taken by brazil with a GDP grow to more then 2 times that of Mexico's. In 2010, the murder rate was 17 out of every 100,000 people, expected to cause a 1% drop in Mexico's annual growth rate. Foreign direct investment has fall from $30 billion to just half that over the last 5 years. With so many problems limiting Mexico's potential, the country needs to get everything in order to to revive itself from the current recession. ...read more.

Conclusion

Sales to latin America and asia are growing twice as fast as those to America. Mexico's largest export is the automotive industry, although its exports to America make up only 65%. Eduardo soils head of the industry's national association thinks this is a good sign because it always Mexico to establish markets in other countries, opening up more opportunities. His goal is to get it down to 50%. Others argue that Mexico can not become a "commodity exporter." just because countries like china have a demand for soy beans, doesn't mean that Mexico should start growing and export this product. They believe the economic future still lies in America's economy. They way out of the recession is to gain a bigger piece of America's slowly growing economy. Reilly Reilly ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Comprehensive Anatomy of China

    upgraded over the last two decades to more closely emulate those of free markets. Previously the banking system was entirely controlled by the State. Today, more autonomy has been granted to the country's financial institutions although the government still plays a significant role in their operations.

  2. Why has GDP growth been so slow in Somalia?

    Somali people ignored international fishing protocols, thereby seriously harming ecology in the region. Fishing soon became an unsustainable practise. Fishermen perceive over fishing as a property right and can therefore hardly be stopped. This lead to a decrease in supply of fish, and eventually the fishermen had exhausted the stock of many species, leaving them without a job.

  1. Is Mexico better off with NAFTA

    In addition, imprudent fiscal policies and excessive reliance on external borrowing contributed to financial fragilities"3. This left Mexico with macroeconomic imbalances. The credit dried up and the government shifted towards more hazardous financial instruments. "When the crisis hit hard at end-1994, the impact was amplified by the balance-sheet effects of

  2. Telecommunications in Latin America "The dawn of a new economy"

    in 1995, Brazil belatedly and with vigor opened its incumbent carrier to private investment more recently and Colombia is now in the process of doing the same with its local as well as long distance carriers. The histories are different, but similar.

  1. Explain the evolution and characteristics of the debt problems of LDCs. In the light ...

    While countries in Asia and Oceania account for over a third of all debts owed to industrialised countries, the value of this debt is equal to a lower percentage of GDP than any other region. By contrast, debts owed by Sub-Saharan Africa account for less than 8% of total debts, but this represents an average of 66% of GDP.

  2. Globalisation - What Implications for Democratic Decision Making.

    Dependency theorists argue that globalisation strengthens strong states at the expense of small peripheral players in the global economy.(20) Apart from their stated internal goals, regional grouping may be one way for countries - particularly small economies - to maximise their influence in global fora.

  1. Emergency Economic Recovery Program From the United Nations International Report, Vol. I, no. A1

    A subset of these activities includes environmental rehabilitation of public beaches and tourist sites, as well as of poor neighborhoods and small towns. The second component is institutional strengthening of the Ministry of Environment. The Ministry would be responsible for environmental regulation and would become the focal point for introducing

  2. The Economy Of Estonia - Features,Current State and Exports

    The World Economic Forum?s Global Competitiveness Index 2012-2013 ranks Estonia 34th among 144 countries. The survey among business leaders measures economic competitiveness based on a combination of technology, the quality of public institutions, and the macroeconomic environment. According to the World Competitiveness Yearbook 2012, published by the International Institute for

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work